OPEC+ Set to Maintain Current Quotas Amid Ongoing Disruptions
OPEC+ is expected to maintain its current crude oil output quotas unchanged for November at an upcoming meeting, according to anonymous sources. This move comes as Gulf producers within OPEC+ have been producing and exporting lower volumes since the Iran war disrupted traffic through the Strait of Hormuz.
In September, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman decided to maintain their current production quotas for October, unwinding a total of 1.65 million barrels per day (bpd) of collective cuts that began in 2023. However, actual supply has been well below the required levels due to Middle East conflict.
OPEC+ has raised nominal production quotas for most of this year, but these increases have become irrelevant as crude oil production at many Gulf states lags behind the required levels. The Strait of Hormuz disruptions have trapped a significant portion of supply in the Persian Gulf since March.
The producer group, led by Saudi Arabia and Russia, appears to be shifting its focus to debates about 2027 quotas, which will set the baselines for any future cuts. OPEC's oil production fell in August due to lower Saudi supply, but output at core OPEC+ producers increased.